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Tue 07 Jul 2009Obama indicates Mideast progress

President Barack Obama has indicated to Jewish-American leaders that the United States and Israel are making progress in bridging their differences on the issue of Jewish settlements.

Mr Obama and Prime Minister Benjamin Netanyahu have differed sharply on Israeli settlements on the occupied West Bank. The United States wants a complete halt to settlement construction, a demand that has opened the most serious rift in US-Israeli relations in a decade.

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